ASIC has suspended the Australian Financial Services licence of a financial advice dealer group for breaching its obligations and failing to obtain AFCA membership.
ASIC has suspended the Australian financial services (AFS) of financial services provider Australasia Wealth Services Management Pty Ltd (AWSM) until 25 June 2019.
According to the corporate regulator, AWSM had breached its financial reporting and audit obligations and the requirement to obtain membership of the Australian Financial Complaints Authority (AFCA).
AWSM’s licence suspension took effect from 27 March 2019. ASIC will consider whether to cancel the licence if, at the end of the suspension period, AWSM is unable to demonstrate that it has complied with its obligations as an AFS licence holder.
“AWSM has since obtained AFCA membership. However, it is yet to fulfil the financial reporting and audit obligations,” ASIC said.
“Licensees need to be aware that failure to meet obligations such as membership of AFCA and lodging annual financial reports and audit statements are serious breaches of the law. ASIC will take action where it finds licensees are failing to comply with the law.”
AWSM also held an Australian credit licence, which has been cancelled effective from 27 March 2019, for failure to maintain competence to undertake the credit activities it was licenced for and for not complying with credit legislation.
AWSM has held AFS licence no. 450303 since 30 April 2014 and ACL no. 450303 since 11 February 2014. AWSM may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
ASIC chair James Shipton has called for financial institutions to integrate fairness into their operations, as international financial regul...
The global CFA Institute and its Australian subsidiary have released 10 major recommendations for reform in the wealth management industry ...
ASIC has obtained declarations against an asset manager after the Queensland Supreme Court found the company’s bank accounts showed $1 mil...